Trading system

Abstract

A Computer apparatus configured to process transactions in fungible assets on behalf of account holders on a client controlled, order by order basis, via account controlled and configured private books of business and public books, as well as proactively route public orders to external venues based on analysis of account-specific best execution configurations including venue cost assignments and account-specific venue routing parameters.

Description

FIELD OF THE INVENTION[0001]The present invention relates to a computer system for facilitating transactions involving fungible assets, particularly types of financial instruments, such as shares (or equities), bonds, warrants and other financial products, and more particularly to transactions involving equities and equity options.BACKGROUND OF THE INVENTION[0002]Exchange of goods or services by way of introducing buyers and sellers is the function of markets. The participants within markets exchange goods or services for economical benefit. Initially markets operated using the model of in person, human to human communication of buy and sell orders. With the evolution of computer systems, communication of buy and sell orders have increasingly been implemented using the computer system. This new type of market is commonly, but not exclusively, referred to as electronic trading.[0003]Electronic trading methods use various types of computer systems to facilitate transactions between a ...

AI Technical Summary

Benefits of technology

[0011]Certain embodiments of the invention are advantageous in that they are not database driven. Implementation as a core in-memory book with key elements running as separate threads capable of reading and writing to the various files and other in-memory data has technical advantages, for example in terms of speed and data recovery.

[0015]The various embodiments of the present invention provide an integrated solution to sophisticated transaction processing involving different types of trading relationships, reducing the need for separate, secure platforms between private counterparties. The various embodiments of the present invention also minimise network transactions, making the processes involved more efficient. Furthermore, the various embodiments of the present invention entitle a given user access to the best available execution mode over a combination of live markets over time.

[0016]Certain embodiments facilitate trades, particularly internalised trades between counterparties, that would not otherwise be possible whilst at the same time mitigating unnecessary processing and message traffic within the system and wider network.

[0017]Disclosed computerised trading apparatus and methods support selective transaction scope across (i) internalised counterparty relationships, (ii) a multilateral trade facility, and the (iii) best execution external venue taking into consideration account external venues based on account holder's configured relationships and network parameters. Embodiments of the invention support trades and combinations of different types of trades across internalised pending orders that are not possible outside the system, ensuring price optimisation, reducing the number of processing steps and minimising message traffic.

[0024]Various embodiments of the invention provide several advantages over previously known technology, for instance, providing participants with the ability to wholly define and regulate participation within their own IMUs between approved trading counter-parties, ability to simultaneous gain exposure to multiple matching opportunities via other participant's or groups of participants' IMUs, and ability to perform controlled executions against previously restricted market participants disallowed due to regulatory or an account holder's compliance constraints.

[0026]In addition, the embodiments of the invention provide account holders previously unavailable levels of control on an order by order basis over cost and routing preference attributes when routing orders exposed to the other transaction environments.

Problems solved by technology

No previously known technology has afforded participants full control and the ability to create new controls, in a concurrent holistic manner, over their counterparties, economic interest and information distribution when performing trade executions.

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